Yorkshire’s Legal People recover millions for clients mis-sold Interest Rate Protection Products.

In just two years, News LLP has hit the £10 Million mark in their drive to recover compensation for SME’s and individuals who were sold unsuitable Interest Rate Hedging Products.

In 2012 the FCA (Financial Conduct Authority) identified serious failings in the way banks sold these products (known as IRHPs). These complex products were mis-sold on the basis that they would provide protection from future adverse interest rate movements.

Chadwick Lawrence’s specialist banking litigation team were already well placed to advise clients in this area. IRHPs were sold to customers, described by the FCA as unsophisticated and these customers faced substantial regular payments under the terms of the agreements and breakage costs, often running into the £100s of £1000s to exit the agreements.

At an early stage of the review process, Chadwick Lawrence identified that there was an imbalance where the banks relied on their own independent solicitors to carry out fact finds but encouraged customers not to seek legal representation.  The Firm reacted to this by developing a team of dedicated banking and financial specialists to deal with these cases resulting in hugely significant settlements for 65 clients to date.

Chadwick Lawrence now work closely with forensic accountants, derivative experts, financial advisers and insolvency practitioners and have built up an enviable reputation in finance and banking litigation, so much so that they are now the go-to Firm for this area of legal services, a significant growth for the company.

Dan Hirst, Associate Solicitor at Chadwick Lawrence commented, “We have recognised a growth area for the Firm and have dedicated time and resource into building up our skill-set to deal with all financial and banking matters, with great success.  Whilst for many the review process is coming to an end, we continue to receive instructions from those who have been unsuccessful in the review, those who have changed solicitors to take advantage of our expertise in the field and to those who are seeking assistance with the sale of embedded hedging products such as the Tailored Business Loans sold by Yorkshire Bank”.

Robert Brackup, Partner at Chadwick Lawrence also commented, “Over the past two years we have successfully reclaimed millions for our clients.  Consequently, we are now approached by accountants, financial institutions and other solicitor Firms to work with or advise on similar finance and banking cases.  A reputation we are keen to maintain and develop as Yorkshire’s Legal People”.